The decision, confirmed on Tuesday, comes despite recent efforts by club president John Textor and director of football Mickael Gerlinger to overturn the ruling during a hearing earlier the same day.
Lyon had been under scrutiny since November 15th, when the DNCG first warned the club of a potential demotion unless it could provide sufficient financial guarantees. At the heart of the issue is a reported €175 million (£149 million) debt.
Textor had remained optimistic, claiming the club would raise “several hundred million euros” in the coming months.
In an effort to stabilize the financial situation, the American businessman recently sold his 43% stake in Premier League side Crystal Palace for £190 million to New York Jets owner Woody Johnson.
The club also offloaded stars Rayan Cherki to Manchester City and Maxence Caqueret to Como, released high earners Alexandre Lacazette and Anthony Lopes, and confirmed a £70 million capital injection from Textor’s Eagle Football group.
Despite these moves, the DNCG upheld its decision. If the ruling stands after appeal, Reims would take Lyon’s place in Ligue 1 next season.
The administrative relegation comes as a heavy blow after Lyon’s sixth-place finish in Ligue 1 secured a Europa League spot. Former club president Jean-Michel Aulas, who oversaw Lyon’s golden era from 1987 to 2023, expressed his dismay, calling it a “terrible blow” and lamenting a “failure to understand.”
Now led by Paulo Fonseca, Lyon are scheduled to begin pre-season on July 7, but their future hangs in the balance as the appeal process unfolds.
